Bassett reports net loss of $37.8 million for fourth quarter
Sales tumble 18.9% to $61.7 million
Furniture Today Staff -- Furniture Today, February 12, 2009
BASSETT, Va. — Bassett Furniture Inds. reported a net loss of $37.8 million for the quarter ended Nov. 28 as sales tumbled 18.9%.
Much of the net loss was attributed to a series of one-time charges - the largest of which was a $23.4 million write-off of the value of its deferred tax assets.
However, like virtually all other furniture manufacturers and retailers, the company said demand remained soft at retail and said it is anticipating a prolonged economic slump.
"We are in an extremely volatile and difficult environment and are focusing our efforts squarely on the generation and preservation of cash," said Rob Spilman, president and CEO. "We are continuing to assess our overall cost structure and inventory levels and are presently implementing plans to reduce both."
At the end of the fiscal year on Nov. 28, inventories were 13% below the previous year, and he said employment had been reduced by 7%.
In addition, Spilman noted Bassett recently suspended its quarterly dividend as well as the employee matching contribution to its 401k plan..
Sales for the most recent quarter totaled $61.7 million, down from $76 million in the quarter ended Nov. 24, 2007.
The quarterly net loss of $37.8 million, or $3.24 per share, compares with a net loss of $3.98 million, or 34 cents per share, in the fourth quarter of fiscal 2007.
Besides the write-down of its deferred tax assets, other one-time charges in the quarter included $3.79 million for restructuring, a $1.94 million reduction in the value of its investment portfolio, and $256,000 for the costs of a recall of one of its cribs.
The company said comparable store sales fell 4.2% during the quarter at its company-owned Bassett Furniture Direct retail stores. However, comparable-store sales rose 2% for the 12 months ended Nov. 28.
The company ended the fiscal year with 31 company-owned retail stores and 84 stores operated by licensees. Six licensee stores were closed during the fourth quarter and two others were acquired by the company.
Sales for the full fiscal year fell 2.4% to $288.3 million. The net loss for the year totaled $40.4 million, or $3.46 per share. That compares with a loss of $9.9 million, or 84 cents per share, in the year ended Nov . 24, 2007.
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Bassett sales drop 18.9% in fourth quarter
Feb 16, 2009
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